(A) In the case of an individual, partnership, association, corporation, fiduciary or other entity engaged in the conduct, operation or prosecution of any business, profession or any other enterprise, there is imposed an annual fee of 0.15% of all gross sales or gross income of such business.
(B) A business entity within the meaning of §§ 110.01 and 110.20 which has a branch or branches, office or offices, or store or stores, warehouse or other place or places in which the entity’s business is transacted, located in the city, shall be considered to be conducting, operating, prosecuting or carrying on a trade, business, profession, enterprise, undertaking or other activity to the full extent of the sum total of all transactions, originating or consummated in, by, or through such Guthrie branch, office, store, warehouse or other place of business including: billings made on such transactions; or services rendered; or shipments made; or goods, chattels, merchandise and the like, sold; or commissions, fees or other remunerations or payments earned as determined by division (D) below. The absence of a branch office, store, warehouse or other permanent place of business within the city shall not exempt or render nonlicensable the gross sales or gross income of any trade, business, profession, enterprise or other activity on which a license fee is imposed by this chapter.
(C) In the case of a partnership, association or other unincorporated business owned by one or more persons, the license fee generally shall be upon the partnership, association or business enterprise as an entity and not ordinarily upon the partners or members thereof.
(D) Business allocation shall be as follows:
(1) Receipts from the following are allocable to the city.
(a) Sales of the licensee’s tangible personal property delivered to the buyer within the corporate limits of the city.
(b) Work done and performed or services rendered in the city. (See division (F)(3) below.)
(c) Rentals from property situated in the city where the rental of such property is a business activity.
(d) All other business receipts earned in the city.
(2) All receipts of the period covered by the report (computed on the cash or accrual basis, in accordance with the method of accounting used in the computation of the license payer’s entire net income) must be taken into account.
(3) In case it shall appear to the City Clerk/Treasurer/Tax Collector that any agreement, understanding or arrangement exists between the license payer and any other person, firm or corporation, whereby the activity, business or gross receipts of the license payer is improperly or inaccurately reflected, the City Clerk/Treasurer/Tax Collector may adjust items of gross receipts so as equitably to determine the license fee.
(E) The term COMPENSATION, as used in this section of the chapter, may include not only payment in case of property, but the gross credits to or charges by the licensee under its normal and usual accounting practices, for the performance of work or services. For example, a plant, a factory or other establishment in the city which processes material or manufactures parts for other plants or factories owned by the licensee, and which may receive credit for the performance of such services only by bookkeeping entries, may be chargeable under this section with the gross amount of such entries and such bookkeeping entries may be considered in lieu of cash or property payment in determining the gross receipts of any license payer under this chapter.
(1) Compensation and other receipts from work done or services performed within the city are allocable to the city and subject to the taxes imposed under this chapter. All amounts so received, credited or charged by licensee in payment for such work or services are so allocable, irrespective of whether done or performed by employees or agents of licensee, by subcontractors or by any other persons. It is immaterial where such amounts were payable or where they were received.
(2) Commissions or fees received by the licensee are allocated to the city if the services for which the commissions were paid were performed in the city. If the licensee’s services for which commissions or fees were paid were performed by salespersons, or other agents or employees attached to, or working out of, a city place of business of the licensee, the licensee’s services will be deemed to have been performed in the city.
(3) Where a lump sum is received by the licensee in payment for services within and without the city, the amount attributable to services within the city is to be determined on the basis of the relative values of, or amounts of time spent in the performance of, such services within and without the city, or by some other reasonable method approved by the City Clerk/Treasurer/Tax Collector. Full details must be submitted with the licensee’s report.
(4) All business receipts earned by the city licensee within the city are allocable to the city; however, business receipts are not considered to have been earned by the licensee in the city solely by reason of the fact that they were payable in, or actually received in the city.
(5) Receipts for sales of capital assets (property not held by the licensee for sale to customers in regular course of business) are not business receipts. Receipts from the sale of real property held by the licensee as a dealer for the sale to customers in the regular course of business are business receipts and are allocable to the city, if the real property was situated in the city. Receipts from sales of intangibles included in business capital, held by the licensee as a dealer for sale to customers in the regular course of business, are business receipts and are allocable to the city, if the sales were made in the city or through a regular place of business of the licensee in the city.
(F) Employees within the city include all employees regularly connected with a place of business maintained by the licensee in the city. Where an employee performed services both within and without the city, the amount treated as compensation for service performed within the city shall be deemed to be:
(1) In case of an employee whose compensation depends directly on the volume of business secured by him or her, such as a salesperson on a commission basis, the amount received by him or her for the business attributable to his or her efforts within the city;
(2) In the case of an employee whose compensation depends on other results achieved, the proportion of the total compensation which the value of his or her services within the city bears to the value of all his or her services; and
(3) In the case of an employee compensated on a time basis, the proportion of the total amount received by him or her which the working time employed in the city bears to the total working time.
(2002 Code, § 110.16) (Ord. 1994-C-2, passed 6-6-1994)